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NOTES to the Annual Financial Statements – for the year ended 30 June 2006

R’000 36. Acquisitions Acquisition of joint venture 36.1 Acquisition of Astrix On 1 January 2006, the Group acquired 50% of the shares of Astrix, a specialist ARV API producer in India. The acquisition was funded from existing cash resources. Cost of the acquisition Cash paid Fair value of assets acquired Goodwill

Property, plant and equipment Intangible assets Inventories Trade and other receivables Cash and cash equivalents at acquisition Trade and other payables Goodwill acquired Purchase consideration The following factors contributed to the recognition of goodwill: – The potential for vertical integration with Aspen’s existing business, specifically regarding the manufacture of APIs for ARVs. – Access to additional technology and know-how on ARV API production. – Excellent growth prospects. The amount of Astrix’s after tax profit included in the results for 2006 is R2,5 million, after the deduction of unrealised intra-Group profits.

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Aspen Annual Report 2006

232 930 (117 343) 115 587

Fair value recognised R’000 38 648 76 204 23 828 2 147 3 100 (26 584) 117 343 115 587 232 930

Carrying amounts before acquisition R’000 38 648 76 204 23 828 2 147 3 100 (26 584) 117 343

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Profile for Aspen Holdings

Aspen Annual Report 2006  

Aspen Annual Report 2006